Briefing: a virtual-asset trading platform licence in Hong Kong

Hong Kong's mandatory licensing regime for centralised virtual-asset trading platforms has been in force since 1 June 2023. For any cross-border group operating, or intending to operate, a platform accessible to Hong Kong investors, the question is no longer whether to engage with the regime – it is how quickly the licensing posture can be brought into order.

A virtual-asset trading platform operating in Hong Kong must hold a licence issued by the Securities and Futures Commission under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. Where the assets traded constitute "securities" or "futures contracts" under Hong Kong law, a separate authorisation under the Securities and Futures Ordinance may also apply. The two regimes can run concurrently.

This briefing sets out what the regime requires, who it reaches across the cross-border corridor, and the immediate steps a group should take.

What the regime requires and who it reaches

The virtual-asset trading platform (VATP) licensing regime imposes mandatory licensing on centralised platforms that offer trading in virtual assets to the public in Hong Kong. The Securities and Futures Commission is the licensing authority. No exemption applies on the basis that a platform is incorporated outside Hong Kong, or that its primary market is elsewhere.

That last point carries real weight for cross-border groups. A Cayman or BVI holding entity operating a platform with Hong Kong-accessible interfaces, or actively onboarding Hong Kong-resident users, will generally fall within the regime's reach. Geographic incorporation does not determine regulatory perimeter. The test turns on access and activity.

The AML and travel rule (the FATF requirement that originator and beneficiary information accompany virtual-asset transfers) obligations attach at the platform level and apply regardless of where individual transactions originate. Customer due diligence standards follow the same Anti-Money Laundering and Counter-Terrorist Financing Ordinance framework that governs licensed banks and securities intermediaries.

Where a virtual asset traded on the platform qualifies as a security or futures contract under the Securities and Futures Ordinance, the SFC's securities-licensing regime also applies. In our cross-border practice, we regularly see groups underestimate this overlap – particularly for structured token products and yield-bearing instruments.

The immediate action for cross-border groups

Three questions determine the urgency of the position. First, does the platform currently serve or accept Hong Kong users? Second, what is the asset classification of the tokens or instruments traded? Third, is the group's AML and customer due diligence documentation in a condition that would withstand SFC review?

A group that cannot answer all three with confidence should treat the gap as an active exposure rather than a future compliance project. The window for a structured, proactive engagement with the licensing process is considerably more manageable than a reactive engagement after an SFC inquiry has opened.

The licensing application itself involves a detailed assessment of the platform's technical and operational controls, its AML programme, its governance structure and – critically for cross-border groups – its substance and management arrangements in Hong Kong. Each element has its own lead time. Attempting to compress the process to meet an external deadline is a recurring source of difficulty.

For groups structured through Hong Kong with offshore holding entities, the interaction between the VATP licensing regime and the entity's existing governance and AML posture warrants early review. We have acted on matters where the offshore holding structure, rather than the platform itself, created the compliance gap. The two layers need to be read together.

The regime also intersects with the HKMA's developing licensing framework for fiat-referenced stablecoin issuers, which commenced in 2025. Groups with a stablecoin component should verify the current scope and commencement date before acting. The perimeters of the two regimes do not map cleanly onto each other.

For a structured assessment of your platform's licensing and AML position across the relevant jurisdictions, write to us at info@lockhartyip.com.

Related practices

• Tech & Web3 – licensing, AML and entity structuring for digital-asset businesses in Hong Kong
• Cross-border SaaS and data agreements touching Singapore – contractual and regulatory interface across the corridor
• Digital-asset fund structured through Hong Kong and Cyprus – holding structure and regulatory analysis for digital-asset funds

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• Tech Web3
• Cross Border Saas Or Data Agreement Touching Singapore 5
• Digital Asset Fund Structured Through Hong Kong Cyprus

This publication is general information and does not constitute legal advice. For advice on your situation, contact info@lockhartyip.com.